Trio Wins 2025 Nobel in Economics for Innovation Research

Joel Mokyr, Philippe Aghion and Peter Howitt have been jointly awarded the 2025 Nobel Prize in Economic Sciences for their influential research on how innovation and the process of “creative destruction” fuel long-term economic growth.

The Royal Swedish Academy of Sciences announced the award on Monday, highlighting the trio’s contributions to understanding how technological change leads to new products, transforms industries, and ultimately improves living standards, health and quality of life across the world.

The prize officially known as the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel comes with a monetary award of 1.2 million US dollars and marks the final Nobel prize to be announced this year.

Mokyr, Aghion, and Howitt’s work has played a crucial role in shaping modern economic theory, especially in explaining how innovation replaces outdated systems and spurs progress, a phenomenon first described by economist Joseph Schumpeter as “creative destruction.”

Earlier last week, the Nobel Prizes in Medicine, Physics, Chemistry, Literature, and Peace were awarded.